§31A-4-24. Capital notes and debentures; retirement; not subject
to assessment.
With the written approval of the commissioner of banking and
with the approval of its board of directors and stockholders, any
banking institution may at any time issue and sell either its
nonconvertible capital notes or nonconvertible debentures or both
its nonconvertible capital notes and nonconvertible debentures.
In connection with his approval or disapproval of the issuance of
the notes or debentures, the commissioner of banking shall take
into consideration the financial condition of the banking
institution, the need of expanded banking capital in the town,
city or community in which the banking institution is located,
the objects and purposes to be accomplished by issuance of the
notes or debentures, and such other economic and monetary factors
as he, in his judgment and discretion, may deem to be proper
bases for his action.

The word "capital," as used in the laws of this state
relating to banking, shall be construed to include the amount of
outstanding capital notes and debentures legally issued by the
banking institution for all purposes. Such capital notes and
debentures shall be subordinate and subject to the claims of
depositors and may be subordinated and subjected to the claims of
other creditors, but shall in no case be subject to any
assessment. The holders of such capital notes and debentures
shall not be held individually responsible as such holders for
any debts, contracts, or engagements of the banking institution,
and shall not be held liable for assessments to restore any impairments in the institution's capital. The capital stock of
the banking institution shall not be considered to be impaired
when the amount of such capital notes and debentures as
represented by cash or sound assets exceeds any impairment found
by the commissioner of banking. If any such impairment in the
institution's capital be found by the commissioner of banking,
before any such capital notes or debentures are retired or paid
by the bank, any existing deficiency of the bank's capital,
disregarding the notes or debentures, must be paid in cash, to
the end that the sound capital assets shall at least equal the
capital stock of the banking institution.